T O P 2 O

EDITOR’S MESSAGE
BUYING GROUPS
MUST CONTINUALLY
REDEFINE THEMSELVES
The definition of an independent is evolving. And so are
the defining strategies of the groups that represent them.
Which formats will survive long-term?
MICHAEL McLARNEY, EDITOR
“
Only time, and
your customers,
will tell which
strategies will
be the winners.
”
I
n conversation recently with senior
executives at some of Canada’s largest
home improvement banners, I’ve
uncovered an interesting theme. While Home
Hardware and RONA may be heated rivals in
the marketplace—both for customers and for
dealers—both sides are telling me much the
same thing: “Not all dealers are a fit for us.”
Luc Rodier, EVP at RONA (see page 20),
and Terry Davis, the new CEO of Home
Hardware Stores (see the in-depth interview
starting on page 34), say they are always on the
lookout for new dealers to join their ranks.
But in recent months they have become more
selective in their recruitment policies. They
are not looking for just any dealers, but only
those who will fit the culture and discipline
of their respective organizations.
Home is by far the most structured in its
banner package, a formula that trades in
a degree of individual freedom for a wellestablished—and
winning—formula. Based
on recent expansion by some of its dealers, who
have opened stores of their own in new markets,
RONA wants dealers with whom it can work
closely to build RONA’s network of stores.
At the other end of the spectrum, groups
like Sexton and TORBSA offer a minimum m of
services, in favour of the all-important “best
price” for key commodities on behalf of its
members.
Somewhere in between lay the likes of
Castle Building Centres and TIM-BR MART
Group. Castle offers a variety of programs and
services, but on an as-needed basis. TIM-BR
MART has been actively building a vertically
integrated operation, with its own hardware
distribution (Chalifour Canada), a range of
dealer services, and now, with the termination
of its licensing and supply agreement with Ace
Hardware in the U.S., the potential to focus
on its own TIMBER MART banner.
So which one is best? Of course, they are
all suited in some way for the diversity of the
individuals who make up this incredibly varied
industry. But long term, some may work better
than others. Only time, and your customers,
will tell which strategies will be the winners.
But, ultimately, tightening up the standards by
which a dealer becomes a member of Home,
RONA, Castle, Sexton, or TIM-BR MART will
help independents find the best fit for their
stores and their own personalities.
It should also help further define and
differentiate the banners in the marketplace.
This can only be a good thing.
mike@hardlines.ca
www.hardlines.ca Hardlines Home Improvement Quarterly THIRD QUARTER / 2014 7